The development team
In the development of a large-scale tourism project it is likely that both the private and the public sectors will be involved. The involvement of the public sector is important for two reasons. First, because of the gap between the amount of investment required and the revenue expected, it is unlikely that major projects can be funded initially solely by the private sector. Second, because of the income-producing potential of tourism development, investment by the public sector can act as a boost to the involvement of the private sector.
Typically, the public sector is involved in preparing the master plan, acquiring land, marketing the development of the project to potentially interested parties, developing and maintaining infrastructure, and monitoring development by the private sector. The private sector conducts feasibility analyses of specific projects and plans, and constructs and operates those deemed financially feasible. The respective roles of the private and public sectors and the time gap between investment requirements and revenue expectations are illustrated in Figure 8.1.
Steps in the development process
The development process begins with an analysis of four areas: the market potential, planning and engineering, socioeconomic, and legal and business. From this basic data, areas that are ripe for development are selected. Objectives, principles and standards are developed and area-wide master plans prepared. For each area under development consideration, the environmental impact is assessed together with an estimate of the overall costs of development. From this a preliminary assessment of economic feasibility can be made. If it is decided to proceed with the project, a multi-year development plan is prepared in conjunction with more detailed financial and economic analyses. Marketing and administrative plans are prepared to support the chosen projects. The overall financial feasibility and economic impact can then be determined. This process is illustrated in Figure 8.2.
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